Answered

Karen Gaines invested ​$10,000 in a money market account with an interest rate of 3.25​% compounded semiannually. Three years​ later, Karen withdrew the full amount to put toward the down payment on a new house. How much did Karen withdraw from the​ account?

Answer :

The total amount of money that Karen withdrew from her account three years later is $11,015.48.

How much did Karen withdraw?

When an amount earns a compound interest seminannually, it means that the amount invested and interest accured increases in value twice a year.

The formula for calculating future value:

FV = P (1 + r)^nm

  • FV = Future value
  • P = Present value
  • R = interest rate
  • m = number of compounding
  • N = number of years

$10,000 x (1 + 0.0325/2)^6 = $11,015.48

To learn more about future value, please check: https://brainly.com/question/18760477

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